Betty incurs the following transactions during the current year. Without considering the transactions, her 2018 AGI is
Question:
Betty incurs the following transactions during the current year. Without considering the transactions, her 2018 AGI is $92,000. Analyze the transactions and ans,ver the following questions:
• On March 10, 2018, she sells a painting for $2,000. Betty is the artist, and she completed the painting in 2013. Her basis for the painting is $50.
• On June 18, 2018, she receives $28,500 from the sale of stock purchased by her uncle in 2003 for $10,000, which she inherited on February 20, 2018, as a result of her uncle's death. The stock's FMV on that date is $30,000.
• On July 30, 2018, she sells land for $25,000 that was received as a gift from her brother on April 8, 2018, when the land's FMV was $30,000. Her brother purchased the land for $43,000 on October 12, 2010. No gift tax was paid.
a. What is her NSTCL or NSTCG?
b. What is her NLTCL or NLTCG?
c. What is Betty's AGI?
d. What is her capital loss carry forward to the next year?
Step by Step Answer:
Federal Taxation 2019 Individuals
ISBN: 9780134739670
32nd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson